· Total number of loans disbursed by MFIs grew by 20% YoY in Q2 FY 16-17
· The aggregate Gross Loan Portfolio (GLP) of MFIs stood at Rs 57,941 Cr
· MFIs provided microcredit to over 3.3 Cr clients
Chandigarh, 12 December, 2016: Microfinance industry has witnessed 84% YoY growth in Aggregate Gross Loan Portfolio (GLP) of microfinance institutions in second quarter of this financial year, according to the recently released quarterly report by Microfinance Institutions Network (MFIN), a Self-Regulatory Organisation (SRO) of the RBI regulated NBFC MFIs. There was an increase of 11% in the aggregate GLP from the last quarter. In its 19th edition of the ‘Micrometer Report’ for Q2 FY16-17, MFIN observed that the microfinance industry’s total loan disbursements grew by 20% in Q2 FY2016-17 over the last year.
The aggregate Gross Loan Portfolio (GLP) of MFIs stood at Rs 57,941 crore in Q2 FY16-17 as compared to Rs 31, 551 crore in Q2 FY15-16. South India leads the way with 31% share in GLP followed by North at 28% and West at 25% and East contributing 16%.As of 30th Sep 2016, MFIs provided microcredit to over 3.3 crore clients, an increase of 54% over Q2 FY 15-16.
According to Ms. Ratna Vishwanathan, Chief Executive Officer, MFIN, “Continuing a steady momentum of growth microfinance industry witnessed 84% of YoY growth in the aggregate Gross Loan Portfolio in the last quarter. It is important to note that numbers for Q2 FY16-17 shows NPAs still at under 1% and the loan recovery rate is well above 99%.Post November 8 the ground situation has undergone a certain change and the impact will be felt for the subsequent quarter.”
Tamil Nadu, Karnataka, Maharashtra, Uttar Pradesh and Madhya Pradesh account for 54% of the total Gross Loan Portfolio in the country, with Karnataka having the largest share. During Q2 FY 16-17, MFIs disbursed 88.48 lakh loans worth Rs 18,955 crore. Average loan amount disbursed per account last year was Rs 21,469 which represents a growth of 25% over Q2 FY 15-16.MFIs indirectly provide life insurance to over 4.3 crore clients with total sum insured of over Rs 100,000 crore. MFIs also indirectly facilitate over 23 Lakhs pension accounts.In Q2 FY16-17, portfolio at risk (PAR) remained under 1%.
Given below are the Highlights from the quarter:
· As of 30th Sep 2016, MFIs provided microcredit to over 3.3 Cr clients, an increase of 54% over Q2 FY 15-16
· The aggregate gross loan portfolio (glp) of MFIs stood at Rs 57,941 Cr (excluding non-performing portfolio i.e. PAR > 180 days in Andhra Pradesh). This represents a YoY growth of 84% over Q2 FY 15-16 and an increase of 11% over the last quarter
· Loan amount disbursed in Q2 FY 16-17 increased by 50% compared to Q2 FY 15-16 reaching to Rs 18,995 Cr
· Total number of loans disbursed by MFIs grew by 20% in Q2 FY 16-17 compared with Q2 FY 15-16
· Portfolio at Risk (PAR) figures remained under 1% for Q2 FY 16-17
· Average loan amount disbursed per account is now Rs 21,469. The figure for Q2 FY 1516 was Rs 17,161
· MFIs now cover 30 states/union territories
· In terms of regional distribution (for glp), south is 31%, east at 16%, north at 28% and west at 25%
About Microfinance Institutions Network
Microfinance Institutions Network (MFIN) is the premier industry association and Self-Regulatory Organisation (SRO) for the microfinance industry in India and its current membership/associates consists of 53 leading NBFC (Non-banking Financial Company) Microfinance Institutions (MFIs) in the country. The aggregate business of MFIN members constitutes over 90 per cent of the Indian microfinance industry (excluding SHGs). MFIN seeks to work closely with regulators and other key stakeholders to achieve larger financial inclusions goals through microfinance.